The Narva plant, operated by NPM Silmet, will produce neodymium permanent magnets, which are primarily used in the manufacturing of electric vehicles and wind turbines.

The industrial building for the magnet factory being established within Narva industrial park (Narva tööstuspark), has received its occupancy permit.
Next, a decision is to be made on the construction of the second phase of the factory.

NPM Narva project manager Aivar Virunen called the industrial building's occupancy permit the factory's "birth certificate."

The construction, which lasted a year and a half, has been completed, and equipment installation and tuning are currently underway.

The official opening is to take place in the second half of the year, with a decision on expansion to a second plant expected next year.

Virunen told "Aktuaalne kaamera": "We do not have serial production as yet, but the first magnets are already finished."

"They have not yet been magnetized; they are still in a so-called dormant state. However, the results we have achieved demonstrate that we are on the right track and carrying out everything correctly," Virunen went on.

"Then in the second half of next year, we will see how the production process has gone, what the results are, and then we can replicate it on a larger scale, since the second factory will be a duplication and expansion of the first factory's capacity," Virunen added.

At the same time, the factory itself is becoming something of a magnet, attracting new businesses to Narva industrial park.

Teet Kuusmik, head of the Ida-Viru investment agency (IVIA), said: "A plant for producing industrial gases for the magnet factory is in preparation.

"Today, the IVIA is negotiating to establish local electricity production in Narva industrial park, which would mean a more competitive electricity price without network fees," Kuusmik went on.

"A significant part of our organization's marketing is based on attracting businesses to Narva that could use the magnet factory's products to manufacture additional goods," he added.

The first phase of the Narva magnet factory cost €120 million, of which €19 million was obtained from the EU's Just Transition Fund.

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